You are on page 1of 7

The Principles of Management

Management principles are guidelines for the decisions and actions of managers. They were
derived through observation and analysis of events faced in actual practice.
The Principles of Management are the essential, underlying factors that form the foundations of
successful management. According to [Henri Fayol]
in his book General and Industrial Management (1916), there are fourteen
'principles

of management'. These can be used to initiate and aid the processes of change, organization,
decision making, skill management and the overall view of the management function.

Division of Work
The specialization of the workforce according to the skills of a person , creating specific personal
and professional development within the labor force and therefore increasing productivity; leads
to specialization which increases the efficiency of labor. By separating a small part of work, the
workers speed and accuracy in its performance increases. This principle is applicable to both
technical as well as managerial work,. this can be made useful in case of project works too.
Planning is to decide what to do before *

Authority and Responsibility
The issue of commands followed by responsibility for their consequences. Authority means the
right of a superior to give enhance order to his subordinates; responsibility means obligation for
performance. This principle suggests that there must be parity between authority and
responsibility. They are co-existent and go together, and are two sides of the same coin. and the
authority must be commensurate with responsibility

Discipline
Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is
essential for the smooth functioning of all organizations. This will also help shape the culture
inside the organization.

Unity of Command
This principle states that every subordinate should receive orders and be accountable to one and
only one superior. If an employee receives orders from more than one superior, it is likely to
create confusion and conflict.Unity of Command also makes it easier to fix responsibility for
mistakes.and the authority should be commensurate with responsibility

Unity of Direction All those working in the same line of activity must understand and pursue the same objectives. It seeks to ensure unity of action. Order should be acceptable and under the rules of the company . Scalar Chain Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. the organization has paid wages. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. focusing of efforts and coordination of strength. Remuneration Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. For this purpose. Remuneration is paid to worker as per their capacity and productivity. The main objective of an organization is to maximize the wealth and the net profit as well. Centralization implies the concentration of decision making authority at the top management. All related activities should be put under one group. Subordination of Individual Interest The management must put aside personal considerations and put company objectives first. The organization should strive to achieve a proper balance. Sharing of authority with lower levels is called decentralization. salary. and they should be under the control of one manager. The Degree of Centralization The amount of power wielded with the central management depends on company size. and benefit to their staff properly and scientifically so that organizational efficiency can be ensured.However the immediate superiors must be informed about the matter Order Social order ensures the fluid operation of a company through authoritative procedure. The quantum and methods of remuneration payable should be fair. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency. there should be one plan of action for them. reasonable and rewarding of effort. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.defying the hierarchy of control. Material order ensures safety and efficiency in the workplace. It is considered a chain of command.

Equity Employees must be treated kindly. Initiative on the part of employees is a source of strength for organization because it provides new and better ideas. Managers should be fair and impartial when dealing with employees. and justice must be enacted to ensure a just workplace. Team spirit helps develop an atmosphere of mutual trust and understanding. individually and communally. Esprit de Corps This refers to the need of managers to ensure and develop morale in the workplace. Employees are likely to take greater interest in the functioning of the organization. Initiative Using the initiative of employees can add strength and new ideas to an organization. giving equal attention towards all employees.Profile of an Entrepreneur Return to Entrepreneurial . An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him. Key Roles Fayol also divided the management function into five key roles:[1]  To organise  To plan and forecast (Prevoyance)  To command  To control  To coordinate Home Entrepreneurial . Stability of Tenure of Personnel The period of service should not be too short and employees should not be moved from positions frequently.

Entrepreneurs are not found in this group. Consulting Entrepreneur Finance Letters & Forms Getting Started Hiring & Firing Home Business Internet New! Legal Managing a Business Managing People Marketing Office Presentations Sales . and while they are in the process of building their business. The recent interest in revitalizing America's dormant productivity has changed all that. As a result. Most believe they can do the job better than anyone else and will strive for maximum responsibility and accountability. there are many characteristics that show up repeatedly. and therefore you will need to work long hours. In small businesses. They have a compelling need to do their own thing in their own way. they refuse to get sick. Good health was a characteristic mentioned by every entrepreneur interviewed. They were asked what characteristics they felt were essential to success as an entrepreneur. structured organizations. Site Index Profile of an Entrepreneur Home Page DO YOU HAVE WHAT IT TAKES? If you think you want to be your own boss and run your own business. They need the freedom to choose and to act according to their own perception of what actions will result in success. There was a general lack of knowledge and information about what made them tick." A dominant characteristic of entrepreneurs is their belief that they are smarter than their peers and superiors. Self-Control Entrepreneurs do not function well in structured organizations and do not like someone having authority over them. In large. Although no one has found the perfect entrepreneurial profile. Once they achieve a goal. You may not be able to afford a support staff to cover all business functions. when everyone else leaves for home. business professionals have learned a lot about what it takes to become a successful entrepreneur. where there is no depth of management. We all know people who use part of their sick leave each year when they are not sick. entrepreneurs were not widely studied. What are the characteristics of an entrepreneur? How does an entrepreneur think? Is your personal profile similar to that of a successful entrepreneur? Until recently. developing new business ideas. but are not sure you have the right qualifications to be an entrepreneur. entrepreneurs are easy to recognize by the statements they make: "If they wanted that job done right. Accounting Advertising Associations Books Business Directories Business Opportunities Business Planning Careers ENTREPRENEURIAL CHARACTERISTICS A series of interviews were conducted with distinguished entrepreneurs. Entrepreneurs are physically resilient and in good health. they quickly replace it with a greater goal. They strive to exert whatever influence they can over future events. we'll cover several important characteristics of entrepreneurs for you to consider and dispel the entrepreneurial myths. At the end of the eight-hour day. the leader must be there. In the sections that follow. Most business universities now offer courses in entrepreneurship. they should have given it to me. the entrepreneur will often continue to work into the evening. They can work for extended periods of time. read on. They enjoy creating business strategies and thrive on the process of achieving their goals.

They are not troubled by ambiguity and uncertainty because they are used to solving problems. and they will continuously review all possibilities to achieve their business objectives. and they are tireless in the pursuit of their goals. such as golf. Selling a Business Sense of Urgency Entrepreneurs have a never-ending sense of urgency to develop their ideas. The entrepreneur only wants to know the magnitude of the numbers and their significance for the operation of the business. and working on multiple business ideas simultaneously. Accountants spend hours balancing the accounts and closing them out. but they are often embarrassed Taxes Time Management TurnAround New! Valuing a Business . They will change their direction when they see that change will improve their prospects for achieving their goals. skiing. Conceptual Ability Entrepreneurs possess the ability to identify relationships quickly in the midst of complex situations. They tackle problems immediately with confidence and are persistent in their pursuit of their objectives. Most are at their best in the face of adversity. they are achievement-oriented. they are more likely to be found getting things done instead of fishing. Entrepreneurs are natural leaders and are usually the first to identify a problem to be overcome. and uneasy. When they are in the entrepreneurial mode. Travel & Maps Entrepreneurs prefer individual sports. they devote their energy to completing the tasks immediately before them. They thrive on activity and are not likely to be found sitting on a bank fishing unless the fish are biting. tense. News interests them if it is timely. but they are seldom unrealistic. Accounting reports illustrate this characteristic. the achievement is to have balanced books. Status Requirements Entrepreneurs find satisfaction in symbols of success that are external to themselves. For them.Self-Confidence Entrepreneurs are self-confident when they are in control of what they're doing and working alone. They want to know the status of a given situation at all times. or tennis. At the same time. They tend to be too trusting and may not be sufficiently suspicious in their business dealings with other people. and factual. They will verify any information they receive before they use it in making a decision. If it is pointed out to them that their solution to a problem will not work for some valid reason. Entrepreneurs say what they mean and assume that everyone else does too. They have drive and high energy levels. since they thrive on their own self-confidence. Realism Entrepreneurs accept things as they are and deal with them accordingly. They like the business they have built to be praised. They identify problems and begin working on their solution faster than other people. They are farsighted and aware of important details. Inactivity makes them impatient. they will quickly identify an alternative problem-solving approach. They prefer games in which their own brawn and brain directly influence the outcome and pace of the game. over team sports. making strategic decisions. Comprehensive Awareness Successful entrepreneurs can comprehend complex situations that may include planning. They may or may not be idealistic. and provides them with information they need.

As the business grows and assumes an organizational structure. They will postpone acquiring status items like a luxury car until they are certain that their business is stable. bypassing the structured chains of authority and responsibility. data. They'll frequently find some new activity on which to vent their pent-up energy. They want to be where the action is and will not stay in the office for extended periods of time. which were adequate during the start-up phases. and they will delegate very few key decisions. entrepreneurs will concentrate their resources and energies on essential business operations.by praise directed at them personally. During tough business periods. will cause them problems as they try to adjust to the structured or corporate organization. Their egos do not prevent them from seeking facts. Entrepreneurs tend to handle people problems with action plans without empathy. The rest won't make it. BusinessTown. they will not hesitate to admit it especially in areas that are outside of their expertise. During the business-building period. For many of them. Their strong direct approach induces them to seek information directly from its source.com. They are not content to leave well enough alone. the divorce rate among entrepreneurs is about average. Emotional Stability Entrepreneurs have a considerable amount of self-control and can handle business pressures. They are comfortable in stress situations and are challenged rather than discouraged by setbacks or failures. Successful entrepreneurs find their satisfaction of status needs in the performance of their business. Their moderate interpersonal skills are often inadequate to provide for stable relationships. Interpersonal Relationships Entrepreneurs are more concerned with people's accomplishments than with their feelings. Entrepreneurs are impatient and drive themselves and everyone around them. Their moderate interpersonal skills. and guidance. Disclaimer Contact us for technical support or provide us feedback.Privacy Statement . However.com LLC . They don't have the tolerance or empathy necessary for team building unless it's their team. Entrepreneurs with good interpersonal skills will be able to adjust and survive as their organization grows and becomes more structured. When they need help. Their lack of sensitivity to people's feelings can cause turmoil and turnover in their organization. entrepreneurs go through a classic management crisis. They generally avoid becoming personally involved and will not hesitate to sever relationships that could hinder the progress of their business. not in the appearance they present to their peers and to the public. their need for control makes it difficult for them to delegate authority in the way that a structured organization demands. when resources are scarce. Symbols of achievement such as position have little relevance to them. LLC. * Source How To Start and Operate a Successful Business   Copyright ©2001-2003 BusinessTown. Entrepreneurs are uncomfortable when things are going well. they seldom devote time to dealing with satisfying people's feelings beyond what is essential to achieving their goals.

com. . BusinessTown.com is a registered trademark of BusinessTown. LLC.